Cullen/frost Bankers Stock Earnings Reports

Cullen/Frost delivered a strong first quarter 2026: net income was $169.3 million, up 13.4% year-over-year, and EPS was $2.65, up 15.2%. Return on average assets was 1.32% and return on average common equity 15.15%. Average loans increased to $22.0 billion (from $20.8 billion a year ago) and average deposits to $42.2 billion. Organic branch expansion continues to drive growth — expansion locations now account for $2.9 billion in loans, $3.6 billion in deposits and ~95,000 new households, and management plans to open 10–12 more branches in 2026. Consumer banking momentum remains strong (J.D. Power award for Texas consumer banking for the 17th consecutive year); consumer checking households grew 5.3% year-over-year and consumer loan balances grew 19% year-over-year, led by mortgage growth. Commercial momentum is notable: the bank added 1,016 new relationships in the quarter (its best Q1 on record), and the overall loan growth pipeline rose to $6.8 billion (a 55% increase quarter-over-quarter) with the 90-day weighted pipeline near $2 billion. Credit metrics remain healthy: nonperforming assets were $73 million (33 bps of loans), and annualized net charge-offs were 11 bps of average loans. Net interest margin improved to 3.74% (up 8 bps from prior quarter). The investment portfolio averaged $19.9 billion with a tax-equivalent yield of 3.85%; purchases included treasuries, agency MBS and municipals. Management estimates a Fed funds outlook that includes a 125-basis-point cut in the fourth quarter of 2026 (guidance under discussion when the call was cut short). Key risks noted: modest increase in total problem loans (to $989 million), larger unrealized losses on the AFS investment portfolio (~$1.15 billion), and some seasonality/one-time items affecting noninterest income and expense. Overall, the quarter shows solid organic growth, improving margin, disciplined credit, and continued branch-driven revenue accretion.